The Study on Emerging Trends in Rural Marketing in India

Prepared by Nilesh Khokhariya College S.V.M. school of management

Point To Be Covered
Introduction Objects & Paper Type Definition Significance of The Rural Marketing Attractive Market Features of The Rural Market Opportunities and Problems in Rural Marketing Emerging Trend in Rural Marketing Conclusion

1% of Rural India is More Than a Million Households. - Census of India The rural consumer of discerning and the rural market is vibrant. At the current rate of growth, it will soon outstrip the urban market. The rural market is not any longer. We are godrej

Introduction
The rural market is an area of darkness to Indian entrepreneurs as well as marketers. An area which is vast in size but shapeless in detail. An area which it self off from the nations economy because its own is not fully monetized. And yet, the rural market represents the large potential market in the country. Rural marketing is marketing to a rural

mindset; not a rural market.

Conti

The urban markets have almost reached a saturation level that further tapping them with a high profit margin has become difficult. Competition is becoming tough in urban markets compelling many firms to incur heavy costs in promotional expenditure.

The awareness level of urban consumers is high and hence product features have to be changed often.

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Today, they are using tooth powder or tooth paste instead of ground nut the children's are asking for chocolate candies. Face cream are lotion are replaced basal (chickpea flour) has face cleanser.

The rural markets are growing at above two times faster pace than urban markets; not surprisingly, rural India accounts for 60% of the total national demand.

Object & paper type

Objective of the study: To understand the emerging trends and scope in the rural marketing. Type of The Paper: Here, The Study of Emerging Trend in the Rural Marketing in India is an informative type of the paper.

Definition

What is Rural Marketing? According to the National Commission on Agriculture: Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, a base on technical and economic considerations and includes pre and post harvest operations, assembling, grading, storage, transportation and distributions.

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According to Pradeep Kashyap;

Rural Marketing can be defined as a function that manages all activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.

Significance of Rural Markets

The potentiality of rural markets is said to be like a 'woken up sleeping giant'.

A number of factors have been recognized as responsible for the rural market boom to come into existence: 1. Increase in population and hence increase in demand.
2.

A marked increase in the rural income due to agrarian prosperity.

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3.

Standard of living is also increasing in rural areas. Large inflow of investment for rural development programmes from government and other sources. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network.

4.

5.

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6.

Increase in literacy and educational level and resultant inclination to sophisticated lives by the rural folks. Inflow of foreign remittances and foreign made goods into rural areas. Change in the land tenure systems causing a structural change in the ownership patterns and consequent changes in the buying behaviour.

7.

8.

What makes Rural Markets Attractive?

742 million people Estimated annual size of the rural market - FMCG Rs. 65,000 Crores - Durables Rs. 5,000 Crores - Agri-inputs (incl. tractors) Rs. 45,000 Crores - 2 / 4 wheelers Rs. 8,000 Crores In last ten years LIC sold approx. 48 % of its policies in rural India. Two million BSNL mobile connections, 50% in small towns/villages.

The six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. Of 20 million Rediff mail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping Site

42 million rural HHs availing banking services in comparison to 27 million urban HHs. Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in urban The rural consumer

Features of Indian Rural Markets

Large and Scattered market Major income from agriculture Traditional Outlook Diverse socio-economic backwardness Infrastructure Facilities

Opportunities in Rural Area

Infrastructure is Improving rapidly. Social Indicators have improved a lot between 1981 and 2001 Marketers can make effective use of the large available infrastructure

Problems Related To Rural Marketing

Barter system Underdeveloped people and underdeveloped markets Lack of proper physical communication facilities Inadequate Media coverage for rural communication Many language and Dialects Market organization & staff: Other influencing factors in Rural Marketing

Emerging Trends In Markets

Online Rural Market (Internet)

Information through Local Agriculture Input Dealers National Chain Stores Cost Benefit Analysis Need Based Production

Market Driven Extension Processing Industry

APANAMANDI / KISAN MANDI / RYTHUBAZAAR

Rural Agri- Export Integrated Marketing

Conclusion
DEVELOP SMART MODEL HAVE ART TO BE IN MART & BECOME SMART